Roni Cohen-Pavon Pleads Guilty to Manipulating Digital currency Market
Roni Cohen-Pavon, the former chief revenue officer at Celsius, has pleaded guilty to four criminal charges related to manipulating the market price of CEL, the primary digital currency announced by Celsius. The guilty plea was created before a federal court in Manhattan, New York. United States District Judge John Koeltl announced the ruling on Sep. 13. Cohen-Pavon’s sentencing is scheduled for Dec. 11, 2024.
States Against Celsius Founder and Collapse of the Company
Cohen-Pavon’s indictment in July 2024 was accompanied by fraud and conspiracy charges against Celsius founder Alex Mashinshky. Prosecutors from the Justice Department argued that Mashinshky conspired with Cohen-Pavon to artificially inflate CEL’s price and deceive investors. It was likewise alleged that Mashinshky defrauded customers and provided false information about the company’s financial situation.
Celsius Operation Described as a Ponzi Scheme
An independent court-appointed examiner’s report revealed that Celsius operated similar to a ponzi scheme under Mashinshky’s leadership. In addition, records released during the company’s bankruptcy proceeding in 2022 showed that plenty of executives, including the former CEO, withdrew large sums from Celsius accounts just before filing for bankruptcy. Mashinshky was arrested and his bail was set at $40 million.
Legal Actions and Denial of Charges
Mashinshky faces legal action from numerous regulators, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC). New York’s Attorney General Letitia James likewise accused him of violating state regulations. Mashinshky has pleaded not guilty and his lawyers have requested the dismissal of the FTC’s case against him, asserting that he is wrongly accused.
Hot Take: Former Celsius Executive Pleads Guilty to Cryptocurrency Market Manipulation
Roni Cohen-Pavon, the former chief revenue officer at Celsius, has entered a guilty plea for charges related to market manipulation of CEL, the primary digital currency announced by Celsius. This case is part of a broader legal battle involving Celsius founder Alex Mashinshky, who faces fraud and conspiracy charges. The states against Mashinshky include artificially inflating CEL’s price and deceiving investors, as well as defrauding customers and misrepresenting the company’s financial status. The collapse of Celsius has been likened to a ponzi scheme, with executives withdrawing whole lot of amounts of money before the company filed for bankruptcy. Legal actions from multiple regulators and accusations from New York’s Attorney General further complicate this high-profile case.
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